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There are eleven settlers and fifteen labourers on the scheme, who support seventy-seven dependants. The developed areas are all in farms, and herds are being built up. Butterfat-produotion amounted to 15,272 lb., which represents an increase of 50 per cent, over last year's return. Housing conditions are good, and during the period under review three cottages, a cow-shed, and a wool-shed were erected. Live-stock tallies at 31st March, 1939, were 142 milking-cows, 79 other dairy stock, 1,070 breeding-ewes, and 299 dry sheep. Mahia. This scheme is located in the north-eastern portion of the Mahia Peninsula, and comprises an area of 3,811 acres, of which 3,145 acres have been developed and occupied by settlers, the balance of 666 acres being suitable for further development. Development has proceeded reasonably well, and thirteen settlers are in occupation, who, with fifty-three labourers, support a total of 149 dependants. The eight settlers on the low-lying flats are making good progress, and the planting of 113 acres of marram-grass has arrested sand encroachment on the 1,000-acre Kaiwaitau sand-dune block. Previously these properties, all potentially valuable dairying areas, were rapidly becoming converted into sandy wastes. An area of 200 acres of barley was cropped with the object of eliminating the extensive growth of blackberry and fern, and a payable harvest was secured. A total of 5,200 posts, 15,000 battens, and 273 strainers was split on the scheme for fencing requirements, and other activities during the year included 405 acres of clearing, 561 chains of fencing, 103 chains of draining, and 334 acres of grassing. Live-stock tallies at 31st March were 167 milking-cows, 89 other dairy stock, and 713 dry sheep. Mohaka. Located on the East Coast Main Highway twenty-six miles south of Wairoa, this scheme comprises 19,709 acres, of which 13,098 acres have been developed and occupied by settlers. Approximately 4,000 acres are suitable for further development. Floods in April, 1938, caused considerable damage, heavy , slips occurred, and several miles of fencing were destroyed. A great deal of rehabilitation work has since been carried out. Despite these setbacks and the dry season experienced, the butterfat return of 93,070 lb. showed an increase of 7,000 lb. over last year's return. The completion of water-supplies no doubt assisted to bring about this result. Owing to the light nature of the soil, the progress of development is not rapid, and it is only by continued top-dressing and intensive cultivation that the property will be made capable of supporting the settlers. Including thirty workers and sixty settlers, the scheme supported 412 people. Live-stock at 31st March, 1939, totalled 996 milking-cows, 401 other dairy stock, 216 run cattle, 5,700 breeding-ewes, 1,358 dry sheep, and 71 working-horses. Five new dwellings and four cow-§heds were completed during the year. Nuhaka. This is a small holding of 39 acres near Nuhaka, on which very little development work has yet been undertaken. Poroporo. The Poroporo Scheme, of 2,604 acres, comprises ten dairy-farms situated on the Whenuakura Flats between Ruatoria and Tikitiki, and the Uruahi sheep-station, a block of 2,103 acres between the Mangaoporo and Poroporo Eivers. Despite the dry season experienced the dairy-farmers have made satisfactory progress, but the adverse conditions have prevented the saving of sufficient feed for the winter. Improvements effected during the year include 360 chains of fencing and the grassing of 91 acres. Stock tallies at the 31st March last were 215 milking-cows, 65 other dairy stock, 554 run cattle, 2,054 breeding-ewes, and 1,391 dry sheep. The farming policy adopted at Uruahi has produced a good-quality flock, and the station is now selling good five-year breeding-ewes annually. The wool-clip for the year was 98 bales. During the year under review the owners received their first distribution of profits. This block is comparatively easy country of good class land with soil of a light loamy nature. Rotokautuku. Situated about two miles from Ruatoria, this is a small scheme which comprises 52 acres, which are all in pasture. During the year 160 chains of fencing were completed and 5 acres put down in other cultivations. When finally developed it should carry 20 cows. Takatahu. This is a small scheme of two dairy-farms of 258 acres and 160 acres, situated near Te Araroa. Both areas are farmed individually, and, considering the hard and wet winter experienced, the butterfat return was satisfactory. The herds arc being improved, and other dairy-farms under neighbouring scheme are being supplied with a good class of heifer bred on Takatahu. It is hoped that dairy requirements for the Matakaoa County schemes will be met from this source as surplus stock is available. Including relief workers, the scheme supported thirty-eight persons during last year. The stock tallies include 128 milking-cows, 69 other dairy stock, and 133 breeding-ewes.

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